Stock exchange elections deadlocked
Stock exchange elections deadlocked
JAKARTA (JP): At 12:00 a.m. this morning, nine hours after the scheduled close of their annual shareholders' meeting, members of the Jakarta Stock Exchange (JSX) had not yet succeeded in electing president in a contest marred by personal attacks among the candidates.
The meeting resolved to continue the meeting after midnight as The Jakarta Post went to press. Presidential candidates were narrowed down four, from an initial 10, earlier in the evening. They included three members of the exchange's previous executive board -- Hasan Zein Machmud, Felia Salim, Achmad Daniri -- and L.G Rompas of the Inter-Pacific Securities Company.
The meeting also elected two new members to the exchange's supervisory board -- Rini MS Suwandi, a director of Astra International and Rustam Effendi, the president of the state- owned Danareksa Securities. They will fill the posts left vacant by Sjahrizal, the former president of the state-owned Bank Pembangunan Indonesia (Bapindo), who is currently serving a jail term for his role in a 1994 credit fraud scandal, and Tito Sulistio, now the president of the parallel over-the-counter exchange.
The JSX, with a market capitalization of over Rp 104 trillion (US$46.85 billion) and an average daily trading value of over Rp 104 billion. Its top job promises more than mere prestige.
The top position also comes with a basic salary of more than Rp 25 million ($11,265) a month.
Per capita income in Indonesia is less than US$700 a year.
Most candidates, however, contended that it was not the money nor the popularity that were the main reasons behind their eagerness to take part in the tough competition for the exchange's top management position. The most commonly cited motivation was a desire to foster the development of the stock exchange.
Minister of Finance Mar'ie Muhammad approved a list of 60 nominees for the election of the JSX president last week but the Capital Market Supervisory Agency (Bapepam) shortened it to 10.
The election was marred by personal attacks among the candidates, who included previous members of the JSX management Hazan Zein Mahmud, Achmad Daniri, Tubagus Hasjim and Felia Salim.
They were challenged by six newcomers: L.G. Rompas, the president of Inter-Pacific Securities, Basjiruddin A. Sarida, the president of the Surabaya Stock Exchange, Rizal Ramli, the managing director of the Econit consultancy firm, Stanislaus Say, a senior official of the ministry of finance, Harry Wiguna, an executive of BT Prima Securities and I Made R Ramia, a senior executive of Panin Securities.
Outside the meeting, which was participated in by representatives of 202 securities companies, copies of a three- page open letter were circulated among the journalists and stock brokers. The letter attacked the noted economist Sjahrir, stock analysts and the managing director of the business consultancy firm ECFIN.
Sjahril was not one of the candidates. The open letter alleged that he had arranged a secret meeting with the purpose of undermining the popularity of Hasan Zein and that he had campaigned in support of Rompas.
In the meeting itself, Hasan Zein came in for harsh criticism for failing to exercise greater control over the proceedings. Finally, though, the election was concluded and the shareholders' meeting approved the exchange's 1994 financial accounts.(hen)